Waitaki MP Jacqui Dean has accused the Government of having poor policies that led to a $93 increase in average rent in Otago since September 2017, compared with the national increase of $55.
Otago Property Investors Association president Kathryn Seque said that comparison did not work in Otago because student rents distorted the numbers.
"The MP that’s released it doesn’t know the Dunedin student market and doesn’t know how that skews the results for November and December," Ms Seque said.
"If you compare September [2017] with September this year it’s actually only about $54.
"There’s obviously the higher rents in the student area. [Bonds] tend to get lodged around November, December, which pushes the average rental up."
Ms Seque did agree with Mrs Dean that the Government’s policies had caused rents to go up, and said the policies had hurt landlords.
"The policy changes that she’s stating that have affected rent is true.
"If you go back to 2017 that’s when everybody had to put all the insulation in which we were all for ... Obviously that increased costs to landlords."
She said rates rises and increasing insurance costs — sometimes double — also put the pinch on landlords.
Proposed changes to the Residential Tenancies Act (RTA), which further restricted landlords’ abilities to evict tenants, would lead to many leaving the market.
"With the RTA reform ... more and more landlords will sell forcing a lot of rentals to become homes, first home buyer homes, displacing a lot of people causing even more of a housing crisis and rents will rise even more."
In response to Mrs Dean’s comments, the Government’s duty minister, Nanaia Mahuta, said supply was the biggest issue for the rental market.
"That's why you see increases in the areas where we have a lack of houses," she said.
"The nine years of neglect by the last Government will take time to fix but we are making good progress."
She said the Government had made available 3381 public housing places, most of which were new builds.
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While landlords can charge what they like, rents have led to Auckland people queueing at 2 in the morning for food grants. The sector need not promote itself as a put upon public service.
The government's policies had hurt landlords'. Poor things- providing a decent place to live is hurtful? We all know who is burnt. Students. They pay in advance for a year in a place they will only live in a proportion of the year- the coldest part mostly.
Being forced to put insulation in sounds like the government stepping in and forcing people to look after their investments (finally).
The Dunedin student sector is an absolute hive of slumlord "houses" and they know they can charge a pretty penny so they lick their lips at every new year rent increase. Heaven forbid they now have to make the place liveable.
The bit that frustrates the most is the fact that the accommodation benefit and supplements are paid by the tax payer and student loans. So in effect, landlords get large amounts of their gains direct from tax payers, yet, mention the subject of a capital gains tax and see the claws come out. It's high time property is not seen as a cash cow. People need homes, simple as that. Stop landlords milking the common tax payer. If rentals are so draining on landlords, then sell them off and let 1st home buyers have them. Put your money into the stock market where you will have to get used to regulations. The cream run is over, suck it up. This has gone on far too long, and look where we are with it. No wonder so many kids are raised below the poverty line. Bloody disgraceful.
I don't quite understand all the anti-landlord rhetoric. Are you really inferring that landlords are to blame for child poverty? It's always easier to point the finger at someone else who is doing better than you, and blame them for your own lack of progress. Rentals are necessary, and if people make good money from the rental properties they own, then good on them! And no, I'm not a home owner or landlord. My landlord is a hard worker, and owns multiple properties. Their success is no barrier to me purchasing my own house in the future. Merry Xmas, and a prosperous new year to you!
Which would infere that you among others have no objection to the fact high rents are paid for in large by government supplements. That my friend comes from tax payers. That money would go well for schools, hospitals and roads. Those same expensive rents going into the pockets of property owners, many of which are operating rentals of very low quality, very often financed by very questionable negative gearing, so their tax obligations are significantly less than any other business owner. So yes, many landlords do and have played their part in child poverty. In the event of a property crash, this very dubious financial sector will have a negative economic impact on all of us when the loans are recalled. You would have to be totally blind if you can't see what effect the high rents are having on people. And those who do want to buy for their first home are trapped, competing against those who have easily raised negatively geared finance looking to add to their portfolios. Those with multiple rentals aren't helping anyone......but themselves. Oh, and please, don't fret over my personal success.